Strong export markets cement IAG Cargo revenue

BA World Cargo and Iberia Cargo’s business unit International Airlines Group (IAG Cargo Group) has reported a revenue increase of 24.5 per cent on first quarter 2011 results against the same period last year.

IAG Cargo Group’s commercial revenue (flown revenue plus surcharges) came in at €290 million ($420 million) in the quarter.

Volumes of 1.514 billion cargo tonne kilometres (CTKs) for the quarter represent an increase of 9 per cent versus the same period last year. Cargo capacity for the same period was up 7 per cent.

Overall yield (commercial revenue per CTK) increased by 14 per cent versus the same period last year, driven partly by improved underlying market conditions, increased surcharge levels and a robust premium product performance.

“Volume increases have been driven by both capacity and load factor improvements,” Steve Gunning, managing director at IAG Cargo Group, comments. “Yield increases have also played an important role. The European and North American export markets have performed well – a promising sign for the rest of the year, particularly as Asia Pacific showed signs of a slowdown during the quarter.”